Problem: The video quality degrades once I add my video clip in the TimeLine window.

Here are the steps I took:

1. I created a video clip in "*.avi" format using the CamStudio software. The Video is recorded in 1280X800, 200fps 22050Hz. The video quality looks very good at this stage

2. I imported (drag and drop) my video clip into "Collections" window under the "Media File" tab. I previewed the video quality still looks very good same as 1 (to preview I first clicked on the video clip in the "Media File" tab and the right mouse clicked on "Preview.."

3. Iuse the mouse to dragged the video clip into the "TimeLine" window. I used the preview tool to view the video clip. The video quality has significantly degraded.

4. I made the move in both AVI and wWM formats. In both cases the video quality looks much worst that what I observed in steps 1 and 2

In order to be sure the video quality does not change when importing the video, start a new project by clicking File >> New Project. In the New Project dialog, choose "Let me specify the Project Dimensions" and set the video size to 1280x800. When you Make Movie, be sure that this is also the size of the file you are creating. This will keep the full quality of the imported video.